Leveraging Intellectual Property: The Value of Harmonized Enforcement Regimes

Gill, Andrej; Heller, David

Item

ITEM ACTIONSEXPORT

Add to Basket

Local TagsRelease HistoryDetailsSummary

Released

Paper

Leveraging Intellectual Property: The Value of Harmonized Enforcement Regimes

MPS-Authors

/persons/resource/persons246169

Heller, David
MPI for Innovation and Competition, Max Planck Society;

External Resource

https://ssrn.com/abstract=4278423
(Preprint)

http://dx.doi.org/10.2139/ssrn.3475459
(Preprint)

Fulltext (restricted access)

There are currently no full texts shared for your IP range.

Fulltext (public)

There are no public fulltexts stored in PuRe

Supplementary Material (public)

There is no public supplementary material available

Citation

Gill, A., & Heller, D. (2022). Leveraging Intellectual Property: The Value of Harmonized Enforcement Regimes.

Cite as: https://hdl.handle.net/21.11116/0000-000C-8E68-0

Abstract

We provide new evidence on how intellectual property (IP) rights support external debt financing by investigating exogenous variation in patent right enforcement. Deploying a unique, large-scale sample of European firms, we exploit the 2004 EU Enforcement Directive, a major legislative change strengthening IP rights across Europe, as identifying event. Results show that firms with valuable patent portfolios disproportionally increase debt financing by about 21%. Effects are particularly pronounced for private SMEs, ex-ante financially constrained firms, and in competitive environments. Adding previously undisclosed patent collateral information provides suggestive evidence that enhanced IP enforcement benefits debt financing beyond a mere collateral channel.